There is a need to make non-cash assets more productive by converting these into securities to create new funds through the full implementation of the Securitisation Act, Senator Manuel A. Roxas II said. In a statement, Mr. Roxas said non-cash assets such as loans and receivables must be converted to securities to create new funds that can spur economic activities, especially for small- and medium-scale enterprises (SMEs). The Act allows the creation of corporations or trusts called special purpose entities to acquire assets that will form an asset pool that will back the issuance of securities. These asset-backed securities will be offered to the investing public and the regular flow of income from these assets will be used to buy back these securities. "Our SMEs are in dire need of capital to finance their businesses.
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